Creating your own reinsurance company involves several players, including your agent, reinsurance program administrator, and financial advisor. The stakes are high and the reinsurance process is somewhat complicated, so it pays to be aware of the common mistakes other dealers make — and avoid repeating them. Not understanding your investment policy statement (IPS) One of… Read More

In the past, if your vehicle manufacturer ran what is known as a retro account (which some people confuse with actual reinsurance), they paid you a certain amount for each warranty you sold. You received that money as ordinary income, either at the dealership or personal level, and it was taxed accordingly. Essentially, all you… Read More

Automobile dealer reinsurance is a specialized financial product that helps auto dealers fulfill their warranty obligations for vehicle service and powertrain contracts, GAP insurance, tire and wheel protection, and several other finance & insurance (F&I) products. In addition, it allows the dealers to gain greater control over the financial aspects of their business. In essence,… Read More